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Anthony Morganti discusses the latest update to Luminar Neo by Skylum Software, version 1.1, which includes a new feature called portrait background removal. He demonstrates how to use this feature with a stock photo of a model standing on the street. By accessing portrait background removal in the edit panel under layer properties and masking, users can quickly remove the background from the image, leaving only the model. Anthony mentions that he is using a beta version, so the final release may differ slightly in appearance and performance.